By Alexis K. Garrett & Curtis Strong, Sr.
College athletics has become increasingly shaped by financial priorities, particularly through conference realignment and media rights agreements. These shifts have created new legal tensions between universities and athletic conferences. The lawsuit filed by Louisiana Tech University (Tech) against Conference USA, stemming from a bitter dispute over the university’s planned departure from the league and its move to the Sun Belt Conference set for July 1, 2026, has been settled. According to David Rumsey from Front Office Sports, Louisiana Tech has agreed to pay a record exit fee of over $8 million to close the chapter on their time in the league (Rumsey, 2026).
Prior to the settlement, Tech stated in its claim that Conference USA drafted a 2026 football schedule that still included the Bulldogs despite months of correspondence indicating they would not participate as a CUSA member next season, calling the move “misleading and disingenuous.” The university further alleged that the conference is attempted to withhold approximately $1 million in annual NCAA designated distributions, funds earmarked specifically for student- athlete welfare as leverage in exit negotiations. Tech also contends that CUSA demanded two full years of withheld distributions as a precondition to any mediation – a demand Tech initially declined. The university’s statement maintained that it had acted in good faith throughout the process, having first notified the conference of its intent to depart seven months prior and offering what it calls a fair financial resolution.
Background
On July 14, 2025, Louisiana Tech University accepted an invitation to join the Sun Belt Conference, simultaneously notifying Conference USA of its intent to depart the league on July 1, 2026. Tech had been a member of Conference USA since 2013, joining what was then a 16-team league. Over the years, the conference shed members significantly, and by the time of Tech’s departure, CUSA had dwindled to the point where only one of those original 16 teams, Florida International University (FIU), remained. Tech cited substantial travel savings for its student athletes and the restoration of regional rivalries as primary drivers of the move, which would bring the Bulldogs back to the Sun Belt for the first time since 2001.
Conference USA responded three days after Tech’s notification, attempting to alter the effective departure date and citing specific provisions of its bylaws. The two sides met in Dallas on July 29, 2025, in which Tech formally reiterated its decision to leave. Negotiations over a financial settlement followed, with Tech submitting a written offer on August 1, 2025. Conference USA countered on August 27, 2025, demanding two full years of withheld distributions as a condition of early departure, a calculation Tech argued relied on variables that had never been disclosed to member institutions. Tech pointed to the precedent set by the departures of Marshall, Southern Miss, and Old Dominion in 2022, schools that were given similar exits with significantly shorter notice periods. Despite multiple attempts at mediation, including a final offer extended by Tech on February 13, 2026, the two sides were unable to reach a resolution, leading to the filing of the 102-page lawsuit in the Third Judicial District Court in Lincoln Parish.
Claims
Louisiana Tech filed the lawsuit asserting that Conference USA had no legal authority to withhold NCAA designated institutional distributions from the university, regardless of the outcome of exit negotiations. These distributions, which total approximately $1 million per year, are funds specifically designated by the NCAA for student athlete welfare and included categories such as academic enhancement, sport sponsorships, grant in aid, student athlete opportunity funds, and student-athlete special assistance funds. Tech argued that while the NCAA has in recent years funneled these distributions through conference offices rather than directly to schools, the funds remain the property of the institution and cannot be withheld as financial leverage.
Tech further claims that Conference USA’s inclusion of the Bulldogs on its 2026 football schedule, despite months of correspondence clearly stating Tech would not participate as a CUSA member, was misleading and inconsistent with the parties’ course of dealing throughout negotiations. The university also contended that CUSA’s demand for two full years of withheld distributions as a precondition to mediation was unreasonable and inconsistent with how the conference handled the departures of Marshall, Southern Miss, and Old Dominion in 2022, schools that provided significantly less notice than Tech.
Conference USA maintained that Tech’s departure timeline conflicted with conference bylaws and that it was entitled to the financial consideration it outlined. The conference included Tech on its 2026 schedule and stated it did not and cannot accept Louisiana Tech’s offer to withdraw early. The matter went before the Third Judicial District Court in Lincoln Parish, with Tech seeking temporary, preliminary, and permanent injunctive relief as well as declaratory relief.
Conclusion
The settlement between Louisiana Tech and Conference USA marks more than just the end of a single legal dispute. It serves as a defining moment in the evolving relationship between universities and the athletic conferences they call home. Louisiana Tech’s willingness to pay over $8 million to secure its move to the Sun Belt speaks volumes about the financial stakes involved in today’s realignment landscape.
For administrators, attorneys, and athletic directors across the country, the Louisiana Tech and CUSA dispute offers a cautionary tale and a roadmap. Membership agreements, grant- of-rights provisions, and exit protocols will need to be scrutinized more carefully than ever before. In an era where conference loyalty is increasingly secondary to financial opportunity, institutions would be wise to understand exactly what leaving will cost them long before they ever decide to go.
References
Brown, T., & Davis, R. (2021). Conference realignment and its legal implications. Sport Law Journal, 28(2), 112–130.
Rumsey, D. (2026). Louisiana Tech to pay record exit fee to end 20-game schedule mess. Front Office Sports. https://frontofficesports.com/louisiana-tech-conference-usa-sun-belt- football-exit-fee-utep/
Alexis Garrett, M.S., is a Sport Management doctoral student and college instructor in the Department of HSTM at Troy University. Her research focuses on leadership behavior and organizational culture in collegiate athletic departments. She received both her undergraduate and master’s degrees in Sport Management with a focus in Leadership. Prior to pursuing her doctoral degree, Garrett spent several years in collegiate athletics as a former Division I track and field student-athlete at Troy University and as an industry professional with experience in student-athlete development, event management, fundraising, and donor relations across the Sun Belt, Big 12, and American Athletic Conferences. She has also presented at various conferences and summits. This is her first published article.
Curtis Strong Sr. is an accomplished athletic administrator and higher education professional dedicated to student-athlete success, compliance, and program development. He currently serves as the Assistant Athletic Director of Compliance and Retention at Kennedy-King College, where he oversees eligibility certification, academic support initiatives, and operational compliance to support student-athlete achievement both academically and athletically. With prior experience as Interim Athletic Director at Richard J. Daley College, Curtis has demonstrated strong leadership in program management, budgeting, game operations, and student-athlete development. He is also a published author, co-authoring his first article, “The $8 Million Exit: Louisiana Tech and C-USA’s Court Battle Ends With a Record-Breaking Departure Fee,” which examines the legal and financial implications of conference realignment in collegiate athletics. He is the creator of the Student-Athlete College Success Boot Camp, an initiative designed to support academic readiness, mental health, and life skills for student-athletes transitioning into collegiate athletics. Curtis earned his Master of Science in Sport Administration from the University of Cincinnati and is currently pursuing a Ph.D. in Sport Management at Troy University. His research focuses on compliance, student-athlete retention, and expanding access to educational and economic opportunities for underserved communities. Driven by a commitment to equity and impact, Curtis aims to advance into a Director of Athletics role at a four-year institution, where he can lead transformative programs that empower student-athletes and strengthen institutional success.
